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ENGINE: East of Suez Bunker Fuel Availability Outlook

Singapore
Bunker fuel availability remains tight across all grades in Singapore. VLSFO in particular is “super tight”, and prompt deliveries are difficult to find.
Prompt VLSFO deliveries have recently been priced at least $80/mt higher than for dates further out, sources say. Recommended lead times for VLSFO and HSFO are up to two weeks, while LSMGO has a shorter 6-8 days.
Singapore’s fuel oil inventories declined by 3% last week, while middle distillate stocks were drawn by 4% to a three-week low, according to Enterprise Singapore.

The port state saw cargo inflows of fuel oil rise sharply in second half of May. In the week to 1 June, it imported 70% more fuel oil than the weekly average for the whole of May.
According to cargo tracker Vortexa, the bulk of fuel oil imports arrived from the UAE, Brazil, Venezuela and Russia in May. These imports comprised both HSFO and low sulphur fuel oil (LSFO).

East Asia
VLSFO remains tight in Hong Kong and prompt delivery dates can be hard to book, sources say. HSFO and LSMGO availability is slightly better, and some suppliers can offer prompt deliveries. Recommended lead times are around 5-7 days for HSFO and LSMGO.
A supplier in Hong Kong expects VLSFO replenishment stocks to arrive by 25 June, a source says.
Bunker fuel availability in South Korean ports have tightened since last month after two refiners halted offers for the bunker market amid low inventories and pressure to cater domestic fuel market.

One of the two refiners started offering some volumes to bunker ports last week, but has now pulled back VLSFO offers for June again. This has sustained the pressure on other suppliers, sources say. Recommended lead times for VLSFO and LSMGO are around 5-8 days in southern and western South Korean ports.

Bunker demand has slowed some in China’s Zhoushan recently, a source says. VLSFO and HSFO availability remains tight with recommended lead times of 9-11 days. LSMGO is available with shorter lead times. Some suppliers can offer limited volumes for prompt deliveries, sources say.

In the Philippines’ Manila, LSMGO availability is normal and recommended lead times are around three days, a source says.
VLSFO availability is normal in Indonesia’s Jakarta and Surabaya. Recommended lead times are around three days.

South Asia
Bunker fuel availability in the Indian ports of Mumbai and Kochi is normal. Some suppliers can offer prompt deliveries of VLSFO and LSMGO, a source says. VLSFO availability is tight in Vishakhapatnam, where a supplier is out of stock.
In Sri Lanka’s Colombo, availability is slightly tight across all grades. Recommended lead times for VLSFO and LSMGO are around five days. HSFO availability is tight as a supplier is running low on stock.

VLSFO and LSMGO availability is also under some pressure in Bangladesh’s Chittagong. A supplier can offer some volumes for prompt dates, sources say.

Middle East
Bunker fuel availability is tight in Fujairah across all grades. Recommended lead times for VLSFO and LSMGO are around seven days, and around nine days for HSFO.

A supplier is unable to offer HSFO in Fujairah as one of its barges got banned by UAE’s Ministry of Energy, adding more pressure on others’ supply, sources say. Last week, the ministry enforced a ban on three barges amid an unspecified “serious violation”.
Availability in Port Suez is tight across all grades and prompt deliveries are difficult to find.
Suppliers in the Omani ports of Duqm and Sohar have normal availability of LSMGO. A supplier can offer prompt deliveries, a source says.
Source: ENGINE (https://engine.online/)

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